From skin care to wellness and more, brands are using digital marketing, experiential retail, and brand authenticity to make themselves attractive acquisition targets for beauty corporates.
Beauty M&A is heating up.
From Unilever’s acquisition of Sundial Brands last year to P&G’s acquisition of First Aid Beauty this past July, brands are getting snapped up by beauty corporates left and right.
But it’s not just beauty brands — L’Oréal’s acquisition of beauty AR and AI provider ModiFace is one indicator that the future of beauty is tech-enabled.
In a sea of brands, what are beauty corporates looking for when it comes to an acquisition?
Social media & digital marketing capabilities: With the effect that social media — especially YouTube and Instagram — has had on consumer beauty shopping, corporates are looking for digitally native brands with social media savvy.
Customer data: Data on consumer preferences, shopper purchasing patterns, and more is invaluable to beauty corporates, which are becoming increasingly data-driven. Whether through personalization initiatives or beauty AR platforms, startups have found new ways to capture compelling consumer data that corporates could benefit from.
Millennial & Gen Z friendly: Many traditional beauty corporates are looking to cater to millennials and Gen Z audiences, due to their generally higher spending on beauty and personal care products.
Cleaner beauty products: Better-for-you beauty products — “natural,” organic, vegan, cruelty-free, etc. — are boosting purchases and brand loyalty. Corporates have tapped into the trend, which will only magnify in coming years.
Premium offerings: Luxury is one of the fastest-growing categories in the beauty industry. Corporates — especially personal care incumbents like Unilever and P&G — are looking to tap into more premium and luxury brands.
Experiential retail: Most of the brands discussed below have a physical retail component or blend online and offline retail channels.
Brand authenticity: Brand story and authenticity are important to corporates, who are looking for brands and products that will resonate with consumers and encourage repeat purposes.
Below, we look at 23 brands that might be on beauty corporates’ radars, in categories including:
- Skin care
- Hair care
- Personal care & grooming
- Physical retail & e-commerce